The latest food and beverage industry news and trend analysis

Costa Coffee has announced its January 2026 campaign, launching this Thursday (8th January) with a strategic focus on mainstreaming the matcha category across the UK. With a rollout extending to all 2,800+ stores nationwide, the coffee chain is aiming to make the Japanese green tea beverage a staple "everyday choice" rather than a niche speciality item.

The move comes as the "Nation’s Favourite Coffee Shop" seeks to capture the growing wellness-focused demographic in the New Year period. Alongside the beverage innovation, Costa is reinforcing its value proposition with updated bundle deals to drive transaction volume during a traditionally quieter trading month.

Category Expansion: Democratizing Matcha

While matcha has been a staple in independent cafes and competitor chains for years, Costa’s nationwide rollout represents a significant scaling of the category in the UK. The range includes a Hot Matcha Latte, Iced Matcha Latte, and a Strawberry Coconut Iced Matcha Latte, all fully customizable with syrups and milk alternatives.

By placing matcha in every store from "Ayrshire to Abergavenny," Costa is effectively testing the mass-market viability of the ingredient outside of major metropolitan hubs.

Nishant Bhatia, Global Food and Beverage Innovation Director, commented: "Costa Coffee’s matcha is designed to be a feel-good ritual, whether you’re discovering matcha for the first time or already love its smooth flavour."

Coffee Innovation and Retail CPG

In addition to tea innovation, the chain is expanding its coffee menu with the new Spanish Caramelo Latte and the returning Spanish Latte, leveraging the popularity of sweeter, indulgent coffee profiles.

On the retail CPG front, Costa is expanding its "at-home" footprint with Instant Barista Creations Iced Latte sachets. Launching in Tesco on January 19, 2026, and Iceland in February, the range includes Classic and Hazelnut Crème variants, targeting consumers looking to replicate the coffee shop experience at a lower price point.

Costa Express machines will also feature exclusive limited-time offerings (LTOs), specifically a Pistachio Latte and Iced Pistachio Latte, driving differentiation for the automated channel.

Food Menu: Plant-Based and Healthy Snacking

The January food menu leans heavily into functional and plant-based options to align with "Veganuary" and healthy eating trends:

• Plant-Based: New Onion Bhaji Wrap and Tomato & Basil Soup (positioned as 1 of your 5 a day).

• Healthy Snacking: Introduction of Fruit & Nut Mix (high fibre) and Dried Mango.

• Indulgence: Banana & Chocolate Muffin and Orange & Raspberry Victoria Sponge.

To maintain footfall amidst cost-of-living pressures, Costa is doubling down on daypart bundle deals:

• Breakfast: Coffee + Croissant/Toast from £4.99; Bap upgrade from £6.49.

• Lunch: Coffee + Toastie from £6.49 (with an upsell option for crisps at £1).

• Afternoon: Coffee + Cake from £5.49 (2pm–5pm).